Current account deficit drops in H1

FE Online Report | Published: February 02, 2019 17:53:56 | Updated: February 06, 2019 21:07:52

Current account deficit dropped significantly in the first half (H1) of the current fiscal year (FY19), according to the latest statistics of the central bank.

It showed that current account deficit stood at $3.08 billion in July-December period of FY19 (or 2018) while the amount was $5.06 billion in the same period of FY18.

“During H1FY19, current account deficit is moderating, driven by lower import growth (5.7 per cent up to December, 2018) and expected to continue, improving the current account dynamics,” the central bank said in its latest monetary policy statement released on Thursday.

It also projected that current account deficit might come down to $6.38 billion in the current fiscal year which was $9.70 billion in FY18.

“Current account deficit is expected to moderate to below 2.0 per cent of GDP, in line with the sustaniable norm for an emerging market economy at Bangladesh’s current phase of development,” it said.

“Higher exchnage rate flexibility could provide additional support to the ongoing moderation of current account deficit,” it added.

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